China smartphone makers push to build brands in U.S., Europe

QinMin

A Xiaomi handset. The company and many of its Chinese peers are making a push to grow their brands abroad.

BEIJING (Caixin Online) — Chinese smartphone makers with ambitions to expand overseas are making more efforts lately to introduce and promote their brands to foreign consumers.

About Caixin
Caixin is a Beijing-based media group dedicated to providing high-quality
and authoritative financial and business news and information through
periodicals, online and TV/video programs.
• Get the Caixin
e-newsletter

Large Chinese firms such as ZTE Corp.
0763, +3.36%ZTCOF, +1.57%
and Huawei Technologies Co.
002502, -0.69%
have started holding press conference in overseas markets to introduce their new devices, and are also signing promotion agreements with basketball and soccer teams.

The moves are paying off, a manager at ZTE says, as foreign telecom operators are getting familiar with the two Chinese companies and choosing to buy their smartphones.

Many other Chinese smartphone makers, such as Xiaomi Inc. and Meizu Technology Co., are also promoting their brands abroad and are using a variety of channels, such as the social-networking website Facebook
FB, +1.17%
to reach potential customers.

Hoop dreams

In June last year, Huawei held its first overseas press conference in London to launch its P6 phone and has held many similar events in other markets since then.

Huawei is also a sponsor for soccer leagues in Europe, and has signed deals with teams such as Germany’s Dortmund and Italy’s AC Milan in recent years.

Huawei manager Shao Yang said the company has become well-known in Europe, especially in Spain.

Huawei was the sole Chinese brand to make this year’s list of the world’s most valuable 100 brands, as put together by the leading consultancy Interbrand. Huawei made it into the top 100 for the first time, landing at No. 94.

ZTE is making inroads into the U.S., cooperating with teams in the popular National Basketball Association. Its logo can often be seen at arenas around the league.

ZTE signed sponsorship deals with the New York Knicks and Golden State Warriors for the current season, and inked two young stars, Chandler Parsons and Patrick Beverley, as brand ambassadors.

The smartphone company’s cooperation with the NBA’s Houston Rockets last year greatly increased its influence in that city, said Cheng Lixin, ZTE’s chief executive officer for North American operations.

Its market share in Houston — the fourth most populous city in the U.S., where Chinese star Yao Ming played — rose from 4% to 8% last year.

ZTE and Huawei have the money to sponsor sports teams and advertise abroad, an industry analyst said, but smaller smartphone makers like Meizu and Xiaomi were using Facebook to connect with potential buyers.

Facebook Friends

Almost two-thirds of international companies are using Facebook to communicate with fans and consumers, said Amit Midha, who leads Dell Inc.’s Asia-Pacific and Japan operations.

Many Chinese smartphone makers have corporate accounts on Facebook, and count on the website for helping them promote their brands.

These firms have special teams in China to run the accounts, meaning they must figure out ways to get around China’s Great Firewall, which prevents people in the country from accessing sites like Facebook and Twitter
TWTR, +1.28%
The teams also have to figure out ways to overcome language and cultural obstacles.

Lenovo Group
0992, +2.67%LNVGF, +1.86%
has 2.9 million followers on its Facebook account, the most of any Chinese phone maker, and Huawei has 1.2 million. Other companies have tens of thousands of followers. This is a far cry from what other international companies have: Samsung
005930, +1.06%SSNLF, -3.07%
has 40.317 million Facebook followers.

Xiaomi, Meizu and Guangdong Oppo Electronics Industry Co. are trying to attract followers by publishing more information on Facebook about their new models.

When Oppo launched its new N3 model on Oct. 29, it made sure to put photos of the introductory press conference on its Facebook account the same day. This prompted several hundred people to leave messages on Facebook for the company, including inquiries on battery-life capacity and the performance of the phone.

These moves will help the companies make themselves known to foreigners, another industry analyst said.

Intraday Data provided by SIX Financial Information and subject to terms of use. Historical and current end-of-day data provided by SIX Financial Information. All quotes are in local exchange time. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Intraday data delayed at least 15 minutes or per exchange requirements.